Oil rises on dollar weakness but ample supplies cap gains

Oil prices rose on Thursday, driven up by a weakening dollar, although gains were capped by plentiful supplies and bulging inventories despite efforts by Organisation of Petroleum Exporting Countries and other producers to cut output to prop up the market.
Benchmark sweet Brent crude was up 50 cents a barrel $55.58 by 0900 GMT.
US light crude was up 40 cents at $53.15.
Traders said the gains were largely because of a weakening dollar, which has lost 3.9 per cent in value since peaking in January.
Oil is traded in the U.S. currency and a weaker dollar makes fuel purchases less costly for countries using other currencies, potentially spurring demand.
However, oil prices were capped by data from the US Energy Information Administration showing an increase of 2.84 million barrels last week in US crude inventories to 488.3 million barrels.
U.S. oil production has risen by 6.3 per cent since the middle of last year to 8.96 million barrels per day.